#5 Interpreter Strike, Amazon Machine Dubbing, Super Agencies 2019 Financials

Overview of Topics

In this section, the speakers introduce the topics they will discuss in the video, including the results of two super agencies (STL and TransPerfect), an M&A report in the language industry, Amazon's research paper on machine dubbing, and a strike involving interpreters and translators in the Netherlands.

Results of Super Agencies STL and TransPerfect

• SDL did not officially announce figures but confirmed analysts' expectations for 2019, with revenues around $488-490 million USD.

• The revenue increase was about 15% from 2018, driven by Donnelley acquisition in mid-2018.

M&A Report in Language Industry

• SDL reported revenues around £375 million GBP, surpassing RWS in revenue but not market cap.

TransPerfect's Performance

• TransPerfect announced revenues over $764 million USD for 2019, retaining its position as the largest revenue generator in LSP space.

• Growth in 2019 was driven by acquisitions and organic growth; estimated organic growth portion was about $45 million USD.

Timing of Revenue Announcements

• Discussion on why TransPerfect announces revenue early in January despite being a private company; possibly to showcase growth trajectory publicly.

Key Areas of Growth for TransPerfect

Growth Strategies and M&A Trends

In this section, the discussion revolves around growth strategies through acquisitions, revenue generation, AI data collection, and the significance of Translation Management Systems (TMS). Additionally, mergers and acquisitions (M&A) trends in the language industry are explored.

Growth Strategies Through Acquisitions

• Acquisitions play a vital role in driving growth for companies.

• Revenue generation is a key focus post-acquisitions.

• Emphasis on AI data collection as a significant contributor to revenues.

• Translation Management Systems (TMS) highlighted as crucial for operations.

Mergers and Acquisitions (M&A) Trends

• M&A activities are prevalent in the language industry due to fragmentation.

• Companies opt for acquisitions to facilitate growth.

• Private equity firms and founders closely monitor M&A reports for insights.

• Data collation in reports aids decision-making for potential business sales or investments.

Key Highlights from M&A Report

This segment delves into essential findings from the M&A report, focusing on transaction trends, geographical preferences, buyer-seller dynamics, and vertical interests within the language service provider (LSP) sector.

Transaction Trends

• Total deals surged by approximately 20% in 2019 compared to 2018.

• Company-to-company transactions dominate the landscape.

• Fewer private equity-backed LSPs engaged in deals during 2019.

Geographical Preferences

• The US emerged as a prominent location for M&A activities.

• Europe was a significant region for sellers with over 50% of all seller transactions.

Vertical Interests

• Media localization witnessed increased acquisition activity.

• Multi-vertical LSPs were sought after by buyers in 2019.

Startup Landscape and Emerging Trends

This part explores startup developments within the language industry, focusing on investment patterns, notable players like Babble, and emerging trends such as AI-backed companies shaping the market landscape.

Startup Dynamics

• Babble stood out prominently among startups in 2019.

• Overall increase in deals and funding within the startup ecosystem.

Emerging Trends

New Section

In this section, the discussion revolves around the utilization of neural machine translation in the localization space and the strategic branding of machine translation as AI to attract investment.

Leveraging Machine Translation as AI

• The localization space emphasizes neural machine translation, often marketing it as AI to enhance appeal to investors.

• Strategic branding plays a crucial role in pitching translation-related propositions to the investment community.

• The fusion of machine translation with an AI label has become essential for garnering interest and support from investors.

New Section

This segment delves into Amazon's exploration of machine dubbing, highlighting advancements in cloud dubbing and its implications for media localization.

Advancements in Machine Dubbing

• Amazon's research paper unveils their venture into machine dubbing, showcasing progress beyond cloud dubbing.

• Cloud dubbing allows remote dubbing without traditional studio setups, offering convenience and flexibility.

• Marcello Federico leads Amazon's machine dubbing initiative, leveraging his extensive experience in the language industry.

New Section

The conversation shifts towards Amazon's experimentation with machine dubbing using TED Talks as a testing ground for English-to-Italian translations.

Experimentation with TED Talks

• Amazon conducts a limited trial involving translating English TED Talks into Italian through speech-to-text and text-to-speech technologies.

• Different versions of dubbed content are created to cater to preferences observed among Italian native speakers and English speakers.

• Language comprehension influences viewer preference for specific dubbed versions, indicating the importance of naturalness in speech delivery.

New Section

Insights are shared regarding Marcello Federico's background and contributions to language industry innovations like Modern MT and Translator Net.

Marcello Federico's Contributions

• Marcello Federico co-founded MateCat and contributed to Modern MT platform development alongside Translator Net.

• His expertise led him to join Amazon AWS as a principal scientist, focusing on cutting-edge research in language technologies.

• Federico's involvement signifies a shift towards advanced language processing techniques within Amazon's research endeavors.

New Section

The discussion centers on the challenges faced during automated dubbing trials, emphasizing the significance of natural speech delivery for effective communication.

Challenges in Automated Dubbing Trials

• Automated dubbing trials encounter issues related to unnatural speaking rates affecting viewer perception.

• Achieving natural speech delivery remains a key challenge in next-generation language processing technologies.

Meeting Updates and Translator Strikes

The discussion revolves around media localization, planning a conference in London, and the strike of Dutch translators due to proposed outsourcing by the government.

Media Localization and Translator Strikes

• Media localization is gaining traction quickly.

• 1,500 to 2,000 Dutch translators are on strike against outsourcing proposals by the government.

• The strike affects all languages and poses challenges for essential services like police interviews.

Challenges in Public Sector Interpreting

The conversation shifts towards challenges in public sector interpreting, referencing past issues with contracts and current efforts to improve interpreter rates.

Public Sector Interpreting Challenges

• Previous contract issues in the UK led to disruptions but have been resolved.

• Rates for interpreters remain low, causing dissatisfaction within the community.

• Efforts are being made to introduce guaranteed minimum rates for interpreters by contracting bodies.

Interpreting Systems Across Europe

A comparison of interpreting systems across different European countries is discussed, highlighting decentralization and potential moves towards centralization.

Interpreting Systems Comparison

• Switzerland's decentralized system contrasts with potential centralization trends in other European countries like Denmark and the Netherlands.

• Fragmentation persists across Europe's interpreting landscape, with some exceptions like Nordic countries and the UK.

Upcoming Events and Conference Preparations

Future events such as meetups and conferences are mentioned along with preparations for an event in Ottawa.

Event Planning and Preparations

• Discussion on attending meetups like the empty meetup in Zurich organized by Tech Shuttle.

• Preparations for an event in Ottawa at the end of February are underway.

Setting Up Event and Ticket Sales

The speaker discusses the upcoming event preparations and urges the audience to purchase early bird tickets before the pricing stage changes.

Event Preparation and Ticket Sales

• The next few weeks will be busy with setting up for the event.

• Early bird tickets are available for purchase with only seven days left before moving to the next pricing stage.